Major challenges that foreign multinational corporations (MNCs) face when doing business in emerging markets, such as China, can be conceptualized in terms of the risks that host countries' institutions present to them.
We focus on hazards attributed to intellectual property (IP) regimes in particular and, even more specifically, forced” technology transfer (FTT) policies.
Among the risks that IP regimes pose to foreign MNCs, those related to appropriability appear to be most directly relevant to FTT policies.
“Appropriability” is the ability to protect knowledge from imitation via some form of monopoly, which allows economic returns from such knowledge to be captured. Or, somewhat more broadly, the term refers to the ability of a…
